Why Indian Motorcycle dealerships, Intellicar were permanently shuttered by Delaware DMV
The Delaware Division of Motor Vehicles has shuttered three dealerships after the ownership failed to provide proper paperwork to license and title cars and motorcycles, but problems persist for some customers.
Indian Motorcycle in Wilmington and Seaford, along with used car dealership Intellicar in Newark, were “permanently suspended” by the Division of Motor Vehicles, and a review of the issues that plagued dozens of the dealerships’ customers continue both within the DMV, as well as the state’s Department of Justice, department spokespeople confirmed.
Kathryn Beasley, chief of communications for the division, stressed that officials could not discuss ongoing investigations nor the details of individual complaints, but said the businesses failed to “submit title applications to the DMV for vehicles sold by the dealerships within 30 days, as required by statute.
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“When DMV ordered the dealerships to submit the statutory required paperwork within the time frame provided in (State Code) Title 21, Chapter 63, the dealerships failed to provide complete deal jackets and title applications for all but a handful of the affected consumers,” she said.
IMC of DE LLC operated the Seaford dealership, and Fain Auto Sales LLC ran the Wilmington Indian Motorcycle location and Intellicar. All three were owned by Mark Lillard.
Lillard was entitled to a hearing under state code, but did not request one by the deadline.
“None of the dealerships requested a hearing within the time to do so and as such, all three licenses have been permanently suspended,” Beasley said, adding that the suspensions include the owner.
The permanent suspension of Lillard's licenses would be grounds to deny any future applications for a dealer's license and bars him from working at any dealership as a manager, salesperson, authorized signer or "any other position in which the individual would interact with customers, handle financial transactions, or complete any paperwork required to be submitted to the division," according to Delaware Code.
When reached by email, Lillard advised Delaware Online/The News Journal to contact his attorney Joe Stanley, of Dover-based law firm Schwartz & Schwartz, Attorneys at Law.
Through his attorney, Lillard defended his business practices and said actions taken against his business have been "addressed through appropriate legal channels, where no wrongdoing was found on my part."
"In response to the recent coverage, I want to emphasize my steadfast commitment to ethical business practices, a principle that has underpinned my entrepreneurial journey for over a decade," Lillard said in a written statement.
"The allegations and subsequent actions taken against my businesses have been addressed through appropriate legal channels, where no wrongdoing was found on my part. Unfortunately, staffing issues related to a rogue employee’s actions hindered my ability to address the DMV and request a hearing. Under advice of counsel, I am unable to go into specifics related to that issue.
My decision to cease operations in Delaware was a proactive and independent choice months ago addressed in an open letter to the state, stemming from a deep disappointment in how these events have unfolded. This decision was made well before any official actions were taken by state authorities. My focus has always been on maintaining the highest standards of operation, a commitment clearly reflected in my long-standing, complaint-free business record. It's regrettable that the complexities and nuances of this situation have not been fully acknowledged. As a small businessman, my priority has always been to conduct business with integrity, something that I will continue to uphold in all my future endeavors. There are a lot of politics involved in this situation beyond what is being portrayed.”
Neither Lillard nor his attorney provided a copy of the "open letter," and DMV officials declined to provide a copy because it's part of an active investigation.
Background on troubles
The Delaware DMV temporarily suspended the dealers’ licenses in September following Delaware Online/The News Journal's coverage of dozens of Indian Motorcycle customers struggling to obtain titles and other records needed to plate and register the bikes they’d purchased at dealership locations in Wilmington and Seaford.
The division also suspended the dealer’s license for Intellicar, a used car dealership owned by Lillard where customers also were experiencing problems.
Customers say dealership staff and Lillard himself blamed the Delaware Division of Motor Vehicles for the delays, along with giving other excuses for warranties no longer being honored or loans from trade-ins not being paid off.
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Problems with the dealerships stem as far back as March 2022 when the state Department of Justice received its first of 13 complaints about the businesses. The Delaware Better Business Bureau has logged over a dozen complaints combined at the two locations, and the state DMV has received dozens of complaints as well, which has prompted the investigation.
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The Delaware Department of Transportation and the Division of Motor Vehicles “dispute the claims that the DMV bears any responsibility for the issues created for customers who purchased vehicles from the dealerships,” Beasley said.
Issues persist
Many of those problems remain unresolved.
Motor vehicle officials are working with Polaris, which owns Indian Motorcycle, to “identify the pool of affected individuals and assist the affected individuals, as permitted by Delaware Law, in processing their title applications and other documentation,” Beasley said.
Delaware Online/The News Journal continues to receive calls and emails from customers who have yet to have their problems fixed – ranging from missing titles to vehicles breaking down shortly after purchase.
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The motor vehicle division reiterated that impacted customers should file a DMV complaint form to its Compliance and Investigation Unit and include all paperwork regarding the vehicle purchased or sold.
The owner of Indian Motorcycle, Polaris, said in September that officials were conducting their own internal investigation into what transpired with the dealerships while working with impacted customers to resolve problems.
Lawsuits filed against dealerships, owner
In recent weeks, landlords, banks and Indian Motorcycle’s parent company, Polaris, have filed lawsuits against the dealerships and Lillard seeking financial judgments, returns of commercial property, and a return of Indian Motorcycle merchandise and supplies.
Six separate lawsuits have been filed against Lillard and various limited liability corporations associated with the former vehicle dealer, according to the Delaware Courts online civil case search.
The first lawsuit filed against Lillard and his dealerships was by Polaris Acceptance in October, seeking a return of all Indian Motorcycle products.
Lillard’s attorney, Stanley, requested a “continuance” on Nov. 28, according to the case docket.
Several other creditors followed suit.
In three cases, WSFS Bank is seeking “confessed judgements,” which have been scheduled for a hearing on Feb. 2, 2024, in New Castle County Superior Court. At least one judgment sought totals nearly $150,000, according to a suit filed Nov. 21 by WSFS Bank.
Two other landlord-tenant cases were filed on Nov. 20 by property owners of the Wilmington and Newark dealership locations seeking possession of the commercial properties.
Neither Lillard nor his attorney has responded to any of the other five lawsuits.
Got a tip? Contact Amanda Fries at afries@delawareonline.com, or by calling or texting 302-598-5507. Follow her on X at @mandy_fries.
This article originally appeared on Delaware News Journal: Delaware DMV closes Indian Motorcycle dealerships, Intellicar
